Location-based Sentiment Marketing with LocalResponse

A new location-based marketing service called LocalResponse (currently in beta) hopes to capitalize on location and sentiment to connect advertisers with active consumers. While location-based marketing is nothing new, targeting consumers based on their current emotions is what sets LocalResponse apart.

For example, a user might send a tweet to their followers about a disappointing experience with Brand A. In response, LocalResponse can identify that message then help Brand B send an immediate tweet to that user with an offer to try their competing service. Or, a more obvious strategy is to use check-ins from services like Foursquare to alert the user to a coupon.

But the real key to LocalResponse's strategy is understanding language. Whereas most location services rely on specific data (such as a check-in on Foursquare), LocalResponse will target users based on what they actually type on services like Twitter – such as, "leaving X" or "going to X". According to LocalResponse's data, 80 percent of all check-ins on Twitter use natural language such as this. In all, LocalResponse can analyze posts from 200 million users worldwide.

For now, the service can only message Twitter users until other services like Flickr or Foursquare find a way to insert brand messaging (if ever). And that might be a problem, as a small percentage of Twitter users are responsible for the majority of activity. But what might be even trickier is avoiding the “intruder” label. Getting pounded by branded messages simply by mentioning that brand might backfire considerably.

A few brands have already jumped on board, however. They include Coca-Cola's Powerade Zero and "a major telecom".